F5 Networks Earnings: Investors Cheer Double-Digit Revenue Growth

F5 Networks, Inc. (NASDAQ:FFIV) generated a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. However, investors are cheering the double-digit revenue growth. Shares are up 4.83%.

Results: Net income increased to $90.6 million (1.14 cents per diluted share) in the quarter versus a net gain of $66.49 million in the year-earlier quarter.

Revenue: Rose 13.36% to $365.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: F5 Networks, Inc. reported adjusted net income of 1.14 cents per share. By that measure, the company missed the mean analyst estimate of $1.15. It missed the average revenue estimate of $366.74 million.

Quoting Management: “During the first quarter, strong sales to North American enterprises and service providers were offset by a substantial slowdown in U.S. Federal sales,” said John McAdam, F5 president and chief executive officer. “Japan sales were also weak during the quarter, in contrast to continuing strength in Europe and solid year-over-year growth in the rest of the Asia-Pacific region…

Key Stats:

Revenue increased 0.81% from $362.56 million in the previous quarter. Net income increased 2.63% from $67.72 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.25 to a profit $1.2. For the current year, the average estimate has moved down from a profit of $5.17 to a profit of $5 over the last ninety days.